Superannuation is, without doubt, the best way to save for retirement in Australia and for most people it will be their largest asset, after the family home.
When you picture retirement there are key questions that need to be answered.
When can you retire?
How much will you have to live on?
How long will your money last?
These are the questions we answer (with numbers) in our personal tailored advice, but invariably the answers are sooner, more and longer.
Our job is to help you take advantage of every benefit that super can provide with the ultimate goal being improving your lifestyle in retirement.
The following are just some of the super-related areas we run through with our clients:
An SMSF can give you greater control over your super while also opening up opportunities around investment choice, fees, taxes & estate planning for example. It also allows you to invest in different assets such as direct property, art and even wine (but dreams of sipping that Grange while admiring your Picasso from the deck of your beach house may prove unwise). There are rules and regulations that apply specifically to SMSFs and we can help you understand these and, if appropriate, help establish and run this type of super fund with you.
While super is a great investment vehicle, sometimes it isn't the best place to invest, especially if you need access to your money before retirement.
A managed investment account usually involves a selection of managed funds across different asset classes. This reduces the risk of your portfolio being negatively affected due to one manager or one particular asset underperforming.
Also, investment funds generally allow partial (and full) withdrawals and smaller, regular or ad-hoc deposits.
Diversification & flexibility around payments into and withdrawals from a managed investment are significant benefits when compared with direct property for example. If all your money is tied up in direct property and you need access to $20K, it's unlikely you'd be able to sell just a bathroom.
There are different reasons for establishing an investment fund such as:
Debt Recycling - Would you like to pay off your home loan sooner?
This is a strategy designed to help pay off your home mortgage sooner and leave you with a managed investment portfolio to use as you wish;
Education - Is there any help available with the costs of education?
If you have a child (grandchild, niece, nephew, cousin) at school, TAFE or university for example, there are tax-effective ways to save for their education costs (tuition fees, laptops, uniforms, stationery & more);
Self-Insurance - Is there an alternative to paying insurance premiums?
Some people may choose to contribute into an investment portfolio, rather than paying insurance premiums, to provide a nest-egg to use if they ever became ill or injured.
Retirement - Would you like to retire sooner?
If you like the idea of retiring before you have access to your super or government benefits, then an investment account could help you do this.
We'll help you decide which type of investment is most appropriate for you and help establish and maintain your portfolio for continued performance towards your particular goal.
Wealth protection, or personal insurance, is a necessary expense and for most people, their only cover is the default insurance attached to their super fund. This basic cover generally falls well short of what would pass as adequate.
Insurance is a safety net that stops a financial free-fall should you become ill, injured or even deceased and not be able to work for a period of time.
There are 4 types of personal insurances:
Life insurance - Not much explanation needed here. This is a lump sum payable on the death of the insured. A claim on your policy means you are no longer with us. This cover is extremely important for families with young kids and/or people with mortgages or other debt.
Total & Permanent Disablement (TPD) insurance - This is also a lump sum payment should you become totally and permanently disabled, meaning you are never likely to work again. This payment would likely be in addition to receiving a monthly payment from your income protection insurance.
Income Protection insurance - This is a monthly payment (normally around 75% of your wage) which kicks in after a waiting period (anywhere from 30 days to 2 years) and lasts until the policy end date or you're well enough to return to work. You don't have to be totally and permanently disabled, just not well enough to work.
Trauma insurance - This is the only insurance that has a list of specific events that you are covered for. The most common trauma events are heart attack, cancer and stroke but there is a comprehensive list of other events that you are covered for also (loss of the use of limbs or eyesight for example). This is also the only insurance which must be funded from your cashflow. A successful claim pays a tax-free lump sum to the life insured.
This is not only a stage in your life but also a particular strategy with potentially game-changing benefits. If you're 59 or older and even if you're not thinking of retiring anytime soon, do yourself a huge favour and get in touch with Green Point. It may be possible to turbo-charge your retirement savings or even reduce your working hours, both while still living on the same wage. There are certain tax efficiencies with this strategy that may change the way retirement looks for you. Don't look a gift horse in the mouth. Get in touch and see if you can take advantage of this. It could be the smartest thing you do this year.
The ultimate goal is financial freedom in retirement. This means different things to different people so we look at what this means to you, then we set about achieving that.
We'll show you what retirement looks like if you maintain the status quo and again what it looks like after having implemented our advice.
We leave no stone unturned when it comes to looking at options available to you to help build your retirement savings.
Once in retirement we proactively manage your portfolio to ensure longevity of your capital by taking advantage of rises and falls in the market. This is vitally important given that you won't be contributing to your retirement savings any longer.
We'll take the stress away from worrying about your portfolio so you can relax after a lifetime of work.
Depending on your circumstances you may be eligible for some form of government support and we can help you find the payment most appropriate for you.
Types of payments include:
Green Point's strategic and forward planning means the advice we provide will, where possible, identify ways to help you become eligible or increase your existing payment/s.
Green Point can help you decide the most appropriate course of action if a loved one is entering aged care. We'll look at the implications of selling the family home versus keeping and renting it instead and also what the options are around paying the RAD.
Green Point's extensive network of professionals includes:
Please let us know if you'd like to be put in contact with another professional.
GREEN POINT NEVER HAS, AND NEVER WILL, ACCEPT OR PAY FEES FOR REFERRALS
Our initial advice is not a set and forget document, but rather the frame-work or first step in getting you on course to achieving your goal/s.
As your circumstances change, so too will the advice. Our on-going review service ensures you are always focused and making progress towards your goal/s.
We keep up to date with current rules and regulations and even proposed changes to ensure you're always one step ahead of the general population.
We're also acutely aware of the opportunities that become available to you as you progress through life. We ensure that you're in the best possible position when these new opportunities arise so as to maximise their benefit.
You will have access to the team at Green Point should you have any questions. Maybe you've changed address and need to update your details, maybe you've started a new job and need your super details, maybe there's a new arrival into the family. Maybe you just want an update on how things are going.
These are all part of our on-going review service arrangement.
We aim to give you peace of mind knowing that you have an experienced, dedicated & professional team working with you now and into the future.